Retail market saturation in Prague and in many other regional Czech cities is starting to be felt by developers, according to global property adviser DTZ. In a note on the Czech retail market, DTZ said 'the golden age of Czech retail, when practically every project was a success, has ended'. This has resulted to many developers seeking out expansion in Ukraine, Russia or Romania, where the population’s demand for consumer goods is instead gaining strength.
Retail market saturation in Prague and in many other regional Czech cities is starting to be felt by developers, according to global property adviser DTZ. In a note on the Czech retail market, DTZ said 'the golden age of Czech retail, when practically every project was a success, has ended'. This has resulted to many developers seeking out expansion in Ukraine, Russia or Romania, where the population’s demand for consumer goods is instead gaining strength.
'We are seeing a similar slowdown of expansion in the Czech Republica also among quite a few tenants,' said Petr Valenta, an expert on the retail sector with DTZ. 'Many have already satisfied the minimum number of outlets for this area. For this reason, and thanks also to the large number of projects being offered, these firms are considering more thoroughly where to open a new outlet and are rather focusing on their existing outlets.'
While retailers can expect tougher competition and potential problems at some shopping mall, particularly in regions where salaries are less than the Prague average. 'This certainly doesn’t mean a slump in the whole sector,' Valenta noted. 'After all, Burger King and Starbucks for example are only just now establishing themselves in the Czech Republic and other major players like Praktiker are still lacking here.' Valenta believes the gastronomy sector in particular offers significant growth potential.
